CANGENE REORGANIZES WORKFORCE IN ITS CANADIAN OPERATIONS TO INCREASE EFFICIENCY

Canada NewsWire

TORONTO AND WINNIPEG, April 7

Readers are referred to the cautionary notes regarding Forward-looking Information at the end of this release

Listed TSX, Symbol: CNJ

TORONTO AND WINNIPEG, April 7 /CNW/ - Cangene Corporation (TSX: CNJ)
today announces that it is making organizational changes in its
Canadian operations to reflect decreased U.S. government
contract-manufacturing activity and to align its workforce with the
Company's growing strategic focus on its commercial products. These
factors, combined with the Company's commitment to increase operational
efficiency, have driven a workforce reduction. Between August 1, 2010
and January 31, 2011, approximately 60 positions were eliminated mainly
through attrition. Today, approximately 40 additional positions were
eliminated by way of terminations. This brings the total number of
positions eliminated in the current fiscal year to approximately 100,
representing 12% of the Company's total workforce. The Company will
concentrate resources on pipeline development through product
acquisition, partnering arrangements and internal R&D. In addition, as
it continues to complete the remaining activities under the existing
U.S. government contracts, the Company will evaluate any new
opportunities that fall within the scope of its reduced
contract-manufacturing operations. The U.S. contract-manufacturing
operations of Cangene's Baltimore-based subsidiary, Cangene bioPharma,
Inc., are unaffected by this reorganization.

"In the last several years, our primary focus has been on fulfilling our
U.S. government contractual obligations. With manufacturing of bulk
product for these contracts largely completed and our belief that any
future U.S. government contracts will be at lower volumes to maintain
existing stockpiles, we are increasing our focus on commercial product
growth opportunities. This reorganization makes our Canadian
operations leaner and better able to grow and achieve our goals, which
include the development of new products such as the anti-infective,
IGIV," said Michael Graham, Cangene's acting president and chief
executive officer.

About Cangene Corporation
Cangene is one of Canada's largest and earliest biopharmaceutical
companies. It was founded in 1984 and is headquartered in Winnipeg,
Manitoba. Cangene has approximately 700 employees in six locations
across North America and its products are sold worldwide. It operates
manufacturing facilities in Winnipeg, Manitoba and Baltimore,
Maryland. Cangene operates three U.S. and one Canadian
plasma-collection facilities branded as Cangene Plasma Resources (www.cangeneplasma.com). In addition, it has a regulatory affairs, sales and corporate
communications office in Toronto, Ontario.

Cangene is focused on developing therapeutics for infectious diseases,
and the Company uses patented manufacturing processes to produce
plasma-derived and recombinant therapeutic proteins. Cangene has four
FDA and/or Health Canada-approved hyperimmune products. In addition,
the Company has several more products in development at various
stages. Three of Cangene's products have been accepted into the U.S.
Strategic National Stockpile—botulism antitoxin (investigational
product), anthrax immune globulin (investigational product) and a
vaccinia immune globulin, a product that may be used to counteract
certain complications that may arise from smallpox vaccination.
Cangene's wholly-owned subsidiary, Cangene bioPharma, Inc., is based in
Baltimore, Maryland and includes its U.S. commercial sales and
marketing office as well as a significant contract-manufacturing
business (www.cangenebiopharma.com). Cangene's website, www.cangene.com, includes product and investor information, including past news
releases.

Forward-looking and risk information
The reader should be aware that Cangene's businesses are subject to
risks and uncertainties that cannot be predicted or quantified;
consequently, actual results may differ materially from past results
and those expressed or implied by any forward-looking statements.
Factors that could cause or contribute to such risks or uncertainties
include, but are not limited to: the regulatory environment including
the difficulty of predicting regulatory outcomes; changes in the value
of the Canadian dollar; the Company's reliance on a small number of
customers including government organizations; the demand for new
products and the impact of competitive products, service and pricing;
availability and cost of raw materials, especially the cost,
availability and antibody concentration in plasma; fluctuations in
operating results; government policies or actions; progress and cost of
clinical trials; reliance on key strategic relationships; costs and
possible development delays resulting from use of legal, regulatory or
legislative strategies by the Company's competitors; uncertainty
related to intellectual property protection and potential costs
associated with its defence; the Company's exposure to lawsuits; and
other matters beyond control of management. Risks and uncertainties
are discussed more extensively in the MD&A section of the Company's
most recent annual report and annual information form, which are
available on the Company's website or on SEDAR at www.sedar.com.

The preceding cautionary statements should be considered in connection
with all written or oral statements, especially forward-looking
statements, that are made by the Company or by persons acting on its
behalf and in conjunction with its periodic filings with Securities
Commissions, including those contained in the Company's news releases
and most recently filed annual information form. Forward-looking
statements can be identified by the use of words such as "expects",
"plans", "will", "believes", "estimates", "anticipates", "intends",
"may", "bodes" and other words of similar meaning (including negative
and grammatical variations). Should known or unknown risks or
uncertainties materialize, or should management's assumptions prove
inaccurate, actual results could vary materially from those
anticipated. The Company undertakes no obligation to publicly make or
update any forward-looking statements, except as required by applicable
law.